Takealot is well positioned to continue dominating in South Africa

July 22, 2018

374

Takealot - [Google Images]

Takealot is well positioned to continue growing its business, Naspers has stated in its integrated annual report for the year ended March 2018.

“Takealot continues to grow its business in a sustainable way. It is all about executing a well-made plan, focusing on growing the business and increasing margins, and on becoming more efficient throughout its distribution and supply chain,” said Naspers.

The company said Takealot is the market leader in South Africa when it comes to online shopping, and achieved strong growth in the past year.

Naspers’ positive outlook of Takealot comes after it invested a further $74 million into the online retailer in August 2017. In December 2017, it then bought out a shareholder at a cost of $128 million.

“Not only the boxes they use, but also the padding material that safeguards customers’ products,” said Naspers.

Etail growth

In terms of the overall performance of Naspers’ “etail” division, the company painted a positive picture.

“We achieved strong growth across all our etail businesses and eMAG’s Romanian business became profitable. Post year-end, we signed an agreement to sell our stake in Flipkart for $2.2 billion, representing an internal rate of return of 32%.

“As part of our ongoing portfolio optimisation, we exited non-strategic etail assets Souq and Konga. In May 2017, Souq was sold to Amazon. In February 2018, Konga was sold to Zinox Technologies, a local Nigerian retail business.”

Cape Business News, founded in 1980, is a specialist online and print platform that provides business readers with comprehensive news, with extensive coverage of general business trends, events, statistics, new products, services and projects.